When it comes to buying or refinancing a home, the right of rescission is an important protection for consumers. It gives borrowers the right to cancel certain types of loans within a specified period of time, without penalty. In this article, we will provide a 2024 right of rescission calendar to help you understand your rights and obligations as a borrower.
Table of Contents
Table of Contents
Introduction
When it comes to buying or refinancing a home, the right of rescission is an important protection for consumers. It gives borrowers the right to cancel certain types of loans within a specified period of time, without penalty. In this article, we will provide a 2024 right of rescission calendar to help you understand your rights and obligations as a borrower.
What is the right of rescission?
The right of rescission is a federal law that gives borrowers the right to cancel certain types of loans within three business days. This includes loans for the purchase or refinancing of a primary residence. The purpose of the right of rescission is to give borrowers time to review the loan documents and make sure they understand the terms and costs of the loan.
What types of loans are covered by the right of rescission?
The right of rescission applies to loans that are secured by a borrower's primary residence, such as a mortgage or home equity loan. It does not apply to loans for the purchase of a second home or investment property.
How long do I have to exercise my right of rescission?
You have three business days to exercise your right of rescission. Saturdays, Sundays, and federal holidays are not considered business days. The three-day period begins on the day that you sign the loan documents or receive a Truth in Lending disclosure, whichever is later.
2024 Right of Rescission Calendar
Below is a 2024 right of rescission calendar to help you understand when your right of rescission period begins and ends for loans that are signed or receive a Truth in Lending disclosure in 2024:
Loan Signed or Truth in Lending Disclosure Received
Rescission Period Begins
Rescission Period Ends
January 1 - January 3
January 4
January 7
April 19 - April 21
April 22
April 25
July 3 - July 5
July 8
July 11
September 1 - September 3
September 4
September 9
December 28 - December 30
December 31
January 3, 2025
What happens if I exercise my right of rescission?
If you exercise your right of rescission, you must notify the lender in writing within the three-day period. You do not need to give a reason for the cancellation. The lender must then return any money you have paid, including closing costs and fees, within 20 days. You will be responsible for returning any money you have received from the lender, such as funds to pay off an existing mortgage or home equity loan.
Can the right of rescission be waived?
The right of rescission cannot be waived for loans that are covered by the law. However, there are some exceptions. For example, if you refinance your mortgage with the same lender, you may not have a right of rescission. You should always review your loan documents carefully to understand your rights and obligations.
Conclusion
The right of rescission is an important protection for borrowers who are buying or refinancing a home. By understanding your rights and obligations, you can make informed decisions about your loan and avoid costly mistakes. If you have questions about the right of rescission or your loan documents, be sure to consult with an experienced attorney or financial advisor.
Question and Answer:
Q: Does the right of rescission apply to all types of loans?
A: No, the right of rescission applies only to loans that are secured by a borrower's primary residence, such as a mortgage or home equity loan.
Q: How long do I have to exercise my right of rescission?
A: You have three business days to exercise your right of rescission. Saturdays, Sundays, and federal holidays are not considered business days.
Q: Can the right of rescission be waived?
A: The right of rescission cannot be waived for loans that are covered by the law. However, there are some exceptions. For example, if you refinance your mortgage with the same lender, you may not have a right of rescission.
